Games Workshop‘s (LSE:GAW) share price is ripping higher right now. At £181 per share, the FTSE 100 company’s soared another 12.5% on Thursday (20 November) after releasing first-half trading numbers that trumped forecasts.
The tabletop gaming colossus is now up a whopping 36% since 1 January.
Games Workshop’s one of the FTSE‘s greatest success stories — with capital gains and dividends combined, its shares have delivered an average annual return of 31.7% since 2015.
What can we expect next from the niche retailer?
Estimates topped
In a brief market update, Games Workshop said it expects “core revenue of not less than £310m” at actual exchange rates for the six months to 30 November. That’s up from the £269.4m it generated in the same 2024 period.
As a result, Games Workshop said half-year profit before tax “is estimated to be not less than £135m.” That’s up from £126.8m previously.
Licensing revenue is tipped at £16m, down from £30.1m a year earlier. Last year’s results were boosted by the launch of the blockbuster Warhammer 40,000: Space Marine 2 video game.
Crowning off another strong trading update, the Nottingham-based company announced another £1 per share dividend to be paid in January.
That takes total dividends so far this financial year to £3.25 per share. That’s up from £1.85 at this stage last year.
Impressive numbers
It’s no surprise to this Games Workshop investor that demand for its fantasy products keeps ripping higher. Products like those in its Warhammer 40k universe are the industry gold standard and command a loyal worldwide following.
Russell Pointon, analyst at Edison described first-half trading as “impressive… following the two preceding years that included launches of new editions of its main intellectual properties.”
While licensing revenues came in as predicted, sales of core products (like models, dice, books and paints) once again beat City estimates. But it’s not just strong sales that seem to be powering Games Workshop’s earnings.
According to Pointon, the firm’s first-half profit rise “implies a good improvement in the core operating margin versus H125.” He added that “it takes the achieved H126 profit to just over 60% of our FY26 profit estimate.”
What now?
So what can we expect next from Games Workshop? While trading has remained robust of late, further success isn’t guaranteed given tough consumer conditions in many of its regions.
On top of this, it faces growing competition from other companies seeking a slice of the lucrative fantasy gaming market.
Yet I’m optimistic it can deliver a new phase of explosive growth, driven by new product releases and an acceleration of licensing activity. Global expansion continues and the firm has started work building a fourth factory to keep up with breakneck demand.
I’m especially excited by the company’s TV and film licensing deal with Amazon. This could supercharge long-term core sales and deliver gigantic revenues in its own right.
Games Workshop’s share price has surged 4,160% since 2000. I think there’s lots of scope for further gains, making it worth serious consideration.
